Stability Pool

The Stability Pool (SP) acts as the main source of funds for liquidations on Orby Network. In return for absorbing debt from liquidations, SP depositors are rewarded with the liquidated collateral, which is shared between depositors in proportion to their deposit size. There is no minimum lockup for SP depositors, but withdrawals from the Stability Pool are halted if and when there are existing undercollateralized positions on Orby.

The Stability Pool incentivises deposits via yields, that come from 2 sources:

  1. Liquidations proceeds, which will be paid out in the underlying collateral (e.g. CDCETH)

  2. Protocol rewards paid out in $esORB

Commonly asked questions

Why should I deposit $USC in the Stability Pool?
  • You will earn real yield (liquidation revenue) paid out in $cdcETH

  • You will earn token incentives paid out in $esORB

    • $esORB can be converted to $ORB or deposited in the Vault for even more rewards

I deposited [USC 100] into the Stability Pool. Why do I now only have [USC 80]?

Any $USC deposited in the Stability Pool will be used to pay a liquidated user's debt. Hence, you will expect to see your $USC in the pool decline. However, you will instead receive $cdcETH at a discounted rate in return.

For example, a user with a collateral ratio of 135% (USC 100 worth of borrowing) gets liquidated. $100 will be taken from the Stability Pool (SP) to pay off his debt, and $135 worth of $cdcETH will be sent to the Pool and distributed to liquidity providers.

This essentially means that SP providers paid $100 for $135 worth of $cdcETH.

Can I withdraw my $USC at any time?

Yes - unless there are undercollateralized positions that have yet to be liquidated. In such a scenario, withdrawals will be halted until all underwater positions are liquidated.

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